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At the CNBC-TV18 Global Leadership Summit, Ashishkumar Chauhan, CEO of the National Stock Exchange (NSE), discussed the remarkable evolution of India’s capital markets, tracing its transformation from the late 1990s to the present day.
Reflecting on his career, Chauhan recounted how India’s capital market, once small and underdeveloped, grew into a critical economic pillar. "We established NSE in 1992 and began operations in 1994 with ₹25 crore of capital," Chauhan shared. “We never raised another ₹1 after that.”
Today, the NSE’s market capitalisation has surged to ₹5 lakh crore — over 20,000 times its original value, far exceeding expectations. Chauhan emphasised that this growth was driven by a professional, technology-driven approach, rather than any individual influence.
Evolution of India’s capital markets
Chauhan highlighted the drastic change in the capital market's role in India. In 1999, capital markets accounted for just $200 billion, or approximately 30% of the size of the banking system. Today, the Indian capital market is more than 2.5 times the size of the banking sector.
Beyond its role as a stock exchange, the NSE played a crucial role in developing India’s financial infrastructure. Chauhan outlined how the NSE introduced clearing cooperation, depositories, and frameworks that enabled smoother, more secure market operations.
Chauhan also discussed the landmark introduction of derivatives trading. In 1999, under the Atal Bihari Vajpayee government, Chauhan and his team pushed for a legislative change to allow derivatives trading. Despite initial challenges, the team succeeded in securing an amendment to the Securities Contract Regulation Act, enabling the NSE to launch India’s derivatives market in 2000. Today, India’s derivatives market is among the largest globally.
Vision for a sophisticated market
Chauhan’s vision extended beyond merely creating a stock exchange.
His goal was to build an institution that would promote financial inclusivity and economic growth. By establishing early infrastructure for derivatives and clearing mechanisms, the NSE paved the way for a more accessible and efficient investment environment across India.
Chauhan noted that while capital markets were once viewed as an “avoidable” component of the economy, they are now indispensable to India’s financial landscape. This shift in perception reflects the sector’s tangible growth and its increasing importance in shaping economic policy and financial strategy.
Reflecting on his career, Chauhan recounted how India’s capital market, once small and underdeveloped, grew into a critical economic pillar. "We established NSE in 1992 and began operations in 1994 with ₹25 crore of capital," Chauhan shared. “We never raised another ₹1 after that.”
Today, the NSE’s market capitalisation has surged to ₹5 lakh crore — over 20,000 times its original value, far exceeding expectations. Chauhan emphasised that this growth was driven by a professional, technology-driven approach, rather than any individual influence.
Evolution of India’s capital markets
Chauhan highlighted the drastic change in the capital market's role in India. In 1999, capital markets accounted for just $200 billion, or approximately 30% of the size of the banking system. Today, the Indian capital market is more than 2.5 times the size of the banking sector.
Beyond its role as a stock exchange, the NSE played a crucial role in developing India’s financial infrastructure. Chauhan outlined how the NSE introduced clearing cooperation, depositories, and frameworks that enabled smoother, more secure market operations.
Chauhan also discussed the landmark introduction of derivatives trading. In 1999, under the Atal Bihari Vajpayee government, Chauhan and his team pushed for a legislative change to allow derivatives trading. Despite initial challenges, the team succeeded in securing an amendment to the Securities Contract Regulation Act, enabling the NSE to launch India’s derivatives market in 2000. Today, India’s derivatives market is among the largest globally.
Vision for a sophisticated market
Chauhan’s vision extended beyond merely creating a stock exchange.
His goal was to build an institution that would promote financial inclusivity and economic growth. By establishing early infrastructure for derivatives and clearing mechanisms, the NSE paved the way for a more accessible and efficient investment environment across India.
Chauhan noted that while capital markets were once viewed as an “avoidable” component of the economy, they are now indispensable to India’s financial landscape. This shift in perception reflects the sector’s tangible growth and its increasing importance in shaping economic policy and financial strategy.
(Edited by : Akanksha Upadhyay)
First Published: Nov 15, 2024 9:33 AM IST
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